Brokers warned on compliance after FSA fines rogue broker

The latest FSA fine and banning of an Essex-based broker is a timely warning that brokers must ensure all the proper controls are in place, says law firm Pinsent Masons.

Law firm Pinsent Masons, issued the warning after broker John Falon was fined £195,000 after issuing fake policy documents.

Bruno Geiringer, insurance partner at the law firm, said: “This is a timely warning to all adviser firms to ensure proper controls are in place to pick up and check the submission of applications for own adviser product sales by their representatives.

“This is not a new or complicated way of gaining money and sometimes the fraud is just plain and simple, as in this case. The problem is that it can easily and quickly destroy the adviser firm’s reputation and regulatory standing.

“Unfortunately, due to the financial crisis and tough economic times, we are seeing more and more fraudulent activity.”